Panel Install Has 200 Units of Inventory That Have a Replacement

question 41

Multiple Choice

Panel Install has 200 units of inventory that have a replacement cost of $4.90 per unit.The net realizable value of the inventory also declined.Originally this inventory cost $5.50 per unit from an order of 400.What entry is required?

• A) Loss on inventory write-down \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)120
• \( \quad \)Invertory \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)120
• B) Inventory \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \) 120
• \( \quad \)Loss on inventorywrite-down \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)120
• C) CLoss on inventorywrite-down \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)240
• \( \quad \)inventory \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)240
• D) Inventory \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)240
• \( \quad \)Loss on inventorywrite-down \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \) 240
• E)Make no entry.

Grasp the concept of loan amortization and how payments are structured over time.

Identify how fixed-rate mortgages operate and calculate the changes in principal and interest portions over time.

Analyze annuities, including their valuation and the differences between ordinary annuities and annuities due.

Understand the effects of compounding frequency on the future and present values of investments.

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Definitions:

Equitable Remedy

A non-monetary court order to perform or refrain from performing a specific act, aimed at achieving fairness.

Privity of Contract

A doctrine in contract law stating that only parties involved in the contract have the right to sue or be sued on its terms.

Assignments

The transfer of rights, property, or responsibilities from one party to another, often used in the context of legal and academic settings.

Contractual Relationship

A legal bond between parties, created by an agreement, that outlines rights and obligations.